Three major optical communication stocks have doubled this year. Will the momentum continue?

慢慢变富的牛牛

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In the AI era, you not only need to be inside the chip—but also stand in the light? Read on for a quick look at 'the light-chaser of the ETF world'—EUV!

Aside from memory/storage, one of the most prominent themes recently within the AI sector is 'optical communications.'If 2025 is the year when AI concepts go mainstream,then 2026 will undoubtedly be the year when earnings from AI’s underlying infrastructure fully materialize.

. Since the beginning of this year, the optical communications segment has delivered an exceptionally strong rally. Why is optical communications so hot right now

? We believe many fellow investors who’ve readFutubull Classroomrelated articles already understand the underlying logic—AI needs not just 'more powerful chips,' but also 'faster data transmission.'Inside data centers, the more GPUs and larger the models, the greater the pressure for machines to exchange data—optical communications acts like the 'highway' for AI computing clusters.

Year-to-date,US stocks $Optical Communication (LIST23979.US)$ cumulative gains have at one point exceeded 70%， $Corning (GLW.US)$ 、 $Lumen Technologies (LUMN.US)$ 、 $Coherent (COHR.US)$ core U.S. optical communications stockshave doubled year-to-date and repeatedly hit new all-time highs

; meanwhile,Hong Kong stocks $Optical Communications (LIST24024.HK)$ has also performed exceptionally well, with year-to-date gains surging over 110% at one point; leading stock $YOFC (06869.HK)$has more than quadrupled from its year-to-date low

This recent rally in optical communications has undoubtedly ignited strong enthusiasm among fellow investors chasing the 'light.' Fueled by such a red-hot market trend, a new ETF focused on addressing AI’s underlying manufacturing and transmission bottlenecks— $Corgi Lithography & Semiconductor Photonics ETF (EUV.US)$ —has emerged and is gradually drawing significant attention from these 'light chasers'!

I. Demystifying EUV – Why Is It the ETF World’s Committed Light Chaser?

EUV— $Corgi Lithography & Semiconductor Photonics ETF (EUV.US)$ , an actively managed ETF first launched by Corgi Funds on May 5, 2026,actively managed ETF! The ETF primarily invests inCompanies related to photonics and light-based technologies, covering areas such as EUV lithography, semiconductor manufacturing and inspection tools, high-speed communications, precision sensing, and next-generation computing.As of May 5, 2026, the ETF’s assets under management total approximately $162.73 million. According to publicly available information, its issuer, Corgi Funds, is the asset management division of Corgi, a financial infrastructure company focused on artificial intelligence, dedicated to investing infrontier technology sectors featuring disruptive innovation.

Compared with other broad-based technology ETFs, EUV’s holdings are highly focused and 'pure,' with the overall portfolio consisting of roughly60% semiconductors and equipment manufacturing and 35% optical communications.This allocation essentiallymaxes out both the 'advanced process nodes' and 'optical transmission' tech trees at once: rather than simply buying shares in a single optical module company or only holding one dominant semiconductor equipment manufacturer, it bundles the entire 'technology stack behind AI computing power' into a single ETF.

According to public information,among the 40 stocks held by EUV, 15 have already posted gains exceeding 100% year-to-date!Based on data from Corgi Funds’ official website (as of May 5, 2026),The top 10 core holdings of EUV directly cover the world's leading players in semiconductor equipment manufacturing and optical communications.

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Living at the 'core'—six of EUV’s top 10 holdings focus on wafer foundry manufacturing, core semiconductor equipment, and chip design, firmly capturing the high-certainty opportunities presented by 'advanced process nodes' in semiconductors.

$Taiwan Semiconductor (TSM.US)$— Holding weight: 9.98%, ranked #1

TSMC is the undisputed global leader in wafer foundry services, possessing the most advanced chip manufacturing processes and serving as the 'incubator' for all high-end AI chips. It continues to benefit from surging AI chip demand and its leadership in advanced process technologies.Up more than 37% year-to-date at one point, it recently hit another all-time high last week, reaching over $420 per share.

$ASML Holding (ASML.US)$— Holding weight: 8.12%, ranked #2

ASML Holding is the sole global supplier of extreme ultraviolet (EUV) lithography machines, monopolizing the most critical equipment for advanced chip manufacturing—truly the crown jewel of the semiconductor supply chain.

$Lam Research (LRCX.US)$— Holding weight: 5.04%, ranked #3

Lam Research is one of the world’s top three semiconductor equipment suppliers, specializing in etch and thin-film deposition technologies—essential steps in wafer fabrication—and is hailed as the 'King of Etch and 3D Structures' in advanced chip manufacturing.Up over 70% cumulatively this year!

$Applied Materials (AMAT.US)$— Portfolio weight: 4.89%

Applied Materials is a globally renowned supplier of semiconductor manufacturing equipment and materials solutions, providing the most critical 'chip-making' tools—such as thin-film deposition and etching systems—for advanced chip fabrication. It is an indispensable 'super pick-and-shovel player' behind wafer fabs worldwide.Up over 70% year-to-date at one point.

$KLA Corp (KLAC.US)$— Portfolio weight: 4.15%

KLA Corp is the undisputed global leader in semiconductor process control and yield management (with over 50% market share), specializing in precision inspection and metrology systems. It serves as the 'yield quality guardian' ensuring 'near-zero defect rates' in advanced packaging and cutting-edge processes.Up over 50% year-to-date at one point.

$MACOM Technology Solutions (MTSI.US)$— Portfolio weight: 3.37%

MACOM is a leading provider of high-performance RF, analog, and mixed-signal semiconductor solutions, delivering high-speed interconnect and communications support primarily for data centers, telecom networks, and industrial markets.Up over 120% year-to-date at one point!

Standing in the 'light'—among the top 10 EUV holdings, four companies are primarily engaged in optical networking, fiber optic materials, and data center optical components. Both of these stocks have surged more than 100% year-to-date, making them steadfast 'light-chasers' in the AI era.

$Corning (GLW.US)$— Position weight: 4.92%

Corning is a global leader in materials science and specialty glass, dedicated to providing core fiber optic and connectivity solutions for AI data centers and 5G networks. It has benefited from strong demand in its optical communications business,GLW has surged over 130% year-to-date!

$Lumentum (LITE.US)$— Position weight: 4.18%

Lumentum is an industry-leading supplier of optical and photonic products, focusing on delivering core optical communication components and high-end commercial lasers for cloud data centers, AI/ML (artificial intelligence/machine learning) infrastructure, and industrial manufacturing.Amid the current optical communications rally, LITE has also taken the lead, surging nearly 170% year-to-date and reaching an all-time high above $1,000 per share!

$Ciena (CIEN.US)$— Position weight: 4.13%

As a world-leading optical transport networking technology company, Ciena specializes in long-haul, high-bandwidth optical hardware and network automation software, serving as a key enabler for telecom operators and enterprises to significantly boost network capacity and transmission efficiency,It has risen nearly 150% year-to-date.

$Coherent (COHR.US)$) — Position weight: 4.00%

Coherent is a leading manufacturer of advanced engineered materials, optoelectronic components, and laser systems, with core products and technologies deeply embedded in key markets such as data center optical networking, electronic instrumentation, and high-end industrial laser manufacturing.It has also surged more than 110% year-to-date at one point!

EUV has been listed for less than half a month. Given that its launch coincided with an exceptionally hot period for the optical communications and semiconductor sectors,following a significant run-up, it became susceptible to technical corrections and profit-taking. Additionally, it has recently been negatively impacted by concerns over rising long-end U.S. interest rates. As of now, EUV is down 3.61% since its launch, closing most recently at $25.40.However, it’s undeniable that this ETF holds an exceptionally strong portfolio—its holdings consist of the 'top performers' in hard-core AI technology.

II. Why is EUV worth watching? Here are several key reasons:

In early April, an ETF focused on the memory sector—DRAM—garnered significant investor attention. Similarly, EUV, which targets semiconductors and optical communications, also deserves close attention from fellow investors.

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- The 'next AI bottleneck trade' after memory

Investing in AI hardware fundamentally means identifying 'bottlenecks.' Previously, the market realized AI lacked computing power, sparking a GPU rally; then came power shortages, fueling a surge in power-related stocks; and when memory became scarce, 'smart money' drove the outstanding performance of the DRAM ETF. Now, as AI cluster scales continue to push new limits, photonics and optical communications have emerged as the 'key solution' to data transmission bottlenecks. EUV has strategically positioned itself in this critical segment, making it—It directly targets the biggest pain point in AI infrastructure.

- Exceptionally high 'hard tech' purity, filtering out market noise

Many broad-based ETFs marketed as AI-focused often include substantial exposure to non-core AI hardware stocks like e-commerce and social media companies, which can drag performance during market pullbacks. In contrast, EUV employs extremely stringent stock selection criteria,holding dominant global semiconductor lithography and manufacturing equipment leaders (such as ASML and TSMC) on one hand, and cutting-edge optical components and optical networking systems on the other.This elite, pure-play combinationmaximizes investors’ ability to precisely capture the upside from AI hardware upgrades, avoiding the awkward situation of 'selling dog meat under a mutton sign' (i.e., misrepresentation).

- Flexibility of active management provides strong support

Technological innovation evolves at a breakneck pace—today’s mainstream technology could become obsolete tomorrow. As an actively managed ETF, EUV’s professional portfolio managers can promptly identify emerging industry trends and dynamically rebalance holdings to eliminate underperformers and retain top players. For investors lacking deep industry research capabilities, this is equivalent to 'hiring' a highly specialized tech-savvy investment team—one that not only selects global industry leaders for you but also continuously adjusts positions in real time based on market conditions.Of course, these types of funds generally charge higher fees compared to passive funds,Their performance depends on the skill of the fund manager, and they tend to have relatively higher volatility and risk.

Completely confused by newly launched ETFs? Make good use ofFutubull AI, your intelligent investment assistant that instantly helps you decode them!

History rolls forward relentlessly, and the AI infrastructure boom is in full swing. From TSMC's advanced foundry capabilities and ASML Holding's lithography dominance to the explosive capacity ramp-up among optical module manufacturers, EUV technology offers us an excellent window to observe this profound technological transformation.Lastly, Futubull also reminds all fellow investors: The market involves risks; invest with caution. While tech sectors offer high elasticity and strong breakout potential, they also come with elevated volatility and valuation pressures. Even for fundamentally strong industries, it’s crucial to rationally assess whether their valuations have 'gotten ahead of themselves.' Before making any investment decisions, please ensure proper position sizing and leverage Futu’s suite of research and analysis tools—be a friend of time and earn returns based on your understanding.Wishing all fellow investors unstoppable success on your investment journey—at the speed of light!

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